If you are interested in the world of oil, you may want to look into the latest topics in the oil industry. Thankfully, with so much information being made available online, you can find information on a wide variety of different subject matter that affects the U.S. and countries abroad.
Because the oil industry affects virtually every corner of the earth, the production and consumption of oil are always changing based on a wide variety of different factors. Hence, you want to know more about the oil market as a whole, here are 4 things that you need to know.
1. Global Landscape is Changing
Due to innovations in technology, the extraction of oil is changing all of the time, especially because of the new alternative that it presents. The change directly impacts the OPEC countries since the dominant position that they held changed to production coming from sources like oil sands and shale oil.
Based on information published the EIA (US Energy Information Administration), as much as 60% of today’s oil is now being produced from countries outside of the scope of OPEC. In fact, the industry now shows the U.S, for the first time, is now the largest producers of both gas and oil.
2. Oil Industry Responsible for Producing Diverse Products
When the term oil is used, it is important to note that it represents more than one type of product. This is because this term actually represents a host of different types of products so it often used in the industry as a generic word. For instance, when the term oil is being used, you should think about various products that come from the hydrocarbon family.
Some of the names most commonly are Crude oil, diesel, gasoline, and fuel oil. Based on the need of the industry, these oils are combined to produce a wide range of different useful products including plastics, furnishing, textiles, food packaging and much more. Therefore, if you want to know what the oil industry contributes to everyday life then you can refer to Spectra Oil one of the industries who has a large scale of production and supply. You may be surprised to know that there is an everlasting list that goes much farther than you would think.
3. How Oil Trading is done today
Today, you may also be surprised to know that oil is traded a number of different ways. One of the most common ways is via the use of electronics. This means when a company would like to trade oil from one country and company to another in significant volumes, the trade is made online via financial contracts.
Once traded in exchanges, the main customers become shipping companies, airlines, and producers. For instance, oil is traded through exchanges, which includes contracts like the Chicago Mercantile Exchange and Intercontinental Exchange.
4. Oil Prices Fluctuate Based on Several Different Factors that Affect the Market
When you buy gas from your local gas station, you may keep track of how the price rises and falls. These fluctuate tend to be very common during certain seasons of the year. Particularly, when you are comparing the prices based on the demand for gas and oil at that time. For instance, it is not uncommon for oil prices to rise during the summer season since people tend to travel more on trips away from their home.
In either case, whatever the reason, the prices can rise quite significantly. It is also important to note that prices vary based on the cost per barrel. This is because a barrel of oil can vary in prices from around $40 to above $100, which means the price people pay for oil is based on the average rates at that time.